The Bola Tinubu administration is off to an interesting start. In just over a week of its inauguration, major announcements have been made about policies geared towards the revitalisation of the country’s crumbling economy.
However, there is still no clear-cut strategy around the Nigerian crypto industry, which can no longer be ignored due to its fast-paced growth. Recall that the past administration of Muhammadu Buhari majorly cracked down on crypto usage in the country, with the highlight of his administration being the February 2021’s crypto ban in Nigeria’s banking system.
What can BAT do to support the Nigerian crypto industry?
According to Nathaniel Luz, CEO of Flincap and author of Bitcoin is Cash, the Nigerian blockchain and crypto industry is set on a trajectory to grow and dominate the economy if the government makes the right moves to facilitate the process.
Nathaniel Luz, one of the foremost crypto proponents in Nigeria, urged the new government to promote a free-market economy to propel the growth of Nigerian businesses and organisations. In his calculations, this economic system can help regulate the price fluctuations and instability that has plagued the nation for so long.
“The existing National Blockchain policy implemented by Former President Muhammadu Buhari is a good step in driving inclusion and innovation in the Nigerian blockchain industry. The current administration can drive its success further by lifting the CBN ban on cryptocurrency transactions in commercial banks.”
In the words of Senator Ihenyen, Lead Partner and Head of Blockchain & Virtual Asset Practice, Infusion Lawyers, the Bola Tinubu administration has to address the elephant in the room which is cryptocurrencies and its usage.
“First, the Tinubu administration should leverage the approved National Blockchain Policy to get the Central Bank of Nigeria (CBN) to immediately withdraw or review the illegal cryptocurrency directive of 5 February 2021.
Second, the Tinubu administration should help ensure that the Money Laundering Act, 2022 which recognizes virtual assets and requires virtual asset service providers (VASPs) to embrace anti-money laundering compliance, should be allowed to operate.
Third, as promised to the electorate, we expect the Tinubu administration to implement its plan of establishing an advisory committee that will introduce policy reforms in the digital assets sector towards creating a more efficient and business-friendly regulatory framework
In the words of the Senator who is the immediate past president of Stakeholders in Blockchain Association of Nigeria (SiBAN), Nigeria cannot be looking to collect capital gains tax from the crypto sector on one hand and be stifling crypto businesses on the other hand.
He believes that the discriminatory practice of denying the entire emerging crypto industry access to banking services in the blanket fashion that the Emefiele-led CBN has done should not also be sustained under the Tinubu administration.
Lucky Uwakwe, a blockchain expert and a notable advocate of blockchain in Africa, urges Bola Tinubu’s administration to mimic the blockchain approach in South Africa which enables crypto players to be partners in the developmental strides of moving the economy forward.
He also emphasized the need for the deployment of the blockchain technology for transparency purposes. Also, there is a need for blockchain hhubs and free trade zones in the geo political zones of the country.
“Enable guys who are playing in the blockchain space to be able to explore, experiment and startup ideas to enable the country to maximise the full Impact of the blockchain strategy.” He said.
He further suggested that the Nigerian Securities and Exchange Commission (SEC) should have a clear-cut rule, so we don’t continue to operate by trial and error.
For Sonayan Ajose,the founder of Cyberville Academy, a working relationship between stakeholders in SIBAN and the Tinubu administration is paramount. Also:
“Bola Tinubu should prioritise investment education and financial knowledge campaigns to teach people about personal finance and also to teach what they need to do before investing.”
Lastly
There is a growing adoption of blockchain products, especially cryptocurrencies in Nigeria. The country has one of the highest crypto-adoption rates in the world today.
However, the nascent space is still plagued by irregularities and unclear rules. But if President Bola Tinubu could address the propositions above, it could place the country in the right direction.
